Session 4, brand strategy, extensions & activation 2013 - 2014


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Session 4, brand strategy, extensions & activation 2013 - 2014

  1. 1. B®ANDING ™
  2. 2. Session 4 Brand strategy, extensions & activation
  3. 3. Last week • Brand psychology • Association ownership • Neuromarketing • The smart unconscious • Marshmellow test
  4. 4. brand strategy
  5. 5. branded house vs. house of brands
  6. 6. Problem of the brandmanager: • Different products • Different type of products • Different markets • Different brands • Different sub brands • Which product gets which brand?
  7. 7. brand architecture
  8. 8. 1. BRAND-PRODUCTMATRIX This matrix gives an overview of all the brands and products of the organization. In order to get more insight into the product and brand strategy of the organization
  9. 9. Products 1 2 3 N Brands 1 2 3 N
  10. 10. Products 1 2 3 N Brands 1 Becel bread Becel liquid Becel on bread Etc. 2 Zwitsal shampoo Zwitsal Baby tissues Zwitsal Sun cream Etc. 3 Glorix bleach Glorix Cleaning tissues Glorix Toilet cleaner Etc. N Etc. Etc. Etc.
  12. 12. Products 1 2 3 N Brands 1 Becel bread Becel liquid Becel on bread Etc. 2 Zwitsal shampoo Zwitsal Baby tissues Zwitsal Sun cream Etc. 3 Glorix bleach Glorix Cleaning tissues Glorix Toilet cleaner Etc. N Etc. Etc. Etc.
  14. 14. Products 1 2 3 N Brands 1 Becel Becel bread Becel liquid Becel on bread Etc. 2 Zwitsa l Zwitsal shampoo Zwitsal Baby tissues Zwitsal Sun cream Etc. 3 Glorix Glorix bleach Glorix Cleaning tissues Glorix Toilet cleaner Etc. N Etc. Etc. Etc.
  15. 15. brand hierarchy
  16. 16. Many brands in 1 product category
  17. 17. Advantages? • Market reach (price segments, distribution channels, regions) • To enlarge visibility in stores and to decrease influence of retailer • To attract consumers that like variety • Increasing internal competition
  18. 18. BRAND PORTFOLIO: the collection of all brands an organization offers within a specific product category
  19. 19. PERFECT BRAND PORTFOLIO: maximizing the market reach with the number of different brands without brand cannibalization
  20. 20. BRAND HIERARCHY: Strategic choices determine the number of brand layers within an organization
  21. 21. Brand hierarchy 1. Corporate / company brand 2. Family brand (umbrella brand) 3. Individual brand 4. Modifier
  22. 22. Brand hierarchy 1. Corporate / company (Unilever) 2. Family (Unox) 3. Individual (Cup-a-Soup) 4. Modifier (different flavours)
  23. 23. Brand hierarchy 1. Corporate company (Microsoft / MSN) 2. Family (Windows) 3. Individual (Vista, Live) 4. Modifier (Hotmail, Messenger, Search)
  24. 24. Assignment: Create a brand hierarchy for EA-Games
  25. 25. Brand hierarchy EA-games • EA • EA sports • FIFA • FIFA 2009, 2010 en 2011street
  26. 26. How can products and brands grow?
  27. 27. Ansoff’s product/ market matrix • Growth according to the 3 dimensions of Abell’s business definition model
  28. 28. Abell model
  29. 29. Ansoff
  30. 30. What if a new product is invented? 1. A new brand, especially for the new product 2. Using an already existing brand 3. A combination of both
  31. 31. 1. A new brand, especially for a new product
  32. 32. 1. A new brand, especially for a new product
  33. 33. 2. Using an already existing brand
  34. 34. 2. Using an already existing brand
  35. 35. brand extentions • line extensions: The family brand (umbrella) is used on a new related product group • category extensions: The family brand is used for a totally new product category
  36. 36. Line extensions
  37. 37. Category extensions
  38. 38. Advantages for the new product • Better brand image • Lowering risks for customers • Better distribution, more trial usage • Better use of promotional budget • Lower costs for introduction and follow-up • Lower costs of brand design
  39. 39. Advantages for the family brand • Clarification of the brand meaning • A better and innovative image • New customers and a better market reach • Revitalizing the family brand • More extensions possible in the near future (Mac, iphone  ipad)
  40. 40. Disadvantages of brand extensions • Confusing customers • Resistance of the retailers • No succes and image damage (VW Phaeton) • Succes but image damage for the family brand (Jaguar x-type) • Cannibalization • Decreasing identification with the product category
  41. 41. Vertical brand extension • Upward vertical brand extension: The organization tries to position itself in a more exclusive price segment
  42. 42. Vertical brand extension • Downward vertical brand extension: The organization tries to position itself in a less exclusive price segment
  43. 43. advertisement overload leads to new ways of advertising & branding
  44. 44. 1850 … Identification branding: Products/services/quality 1950 … Benefit branding: Product benefits/ What’s in it for me? 1970 … Symbolic branding: Personality/user image/ lifestyle 1995 … Societal branding: Ethics/contribution to society ------------------------------------------------------------------------------------------- 2005 … Experience branding: Consumer experience/ all senses the evolution of branding
  45. 45. brand activation
  46. 46. examples • Consumenten op een onverwacht moment aanspreken: IKEA • Consumenten op een prikkelende manier aanspreken: BMW
  47. 47. Changing consumer Consumers…. … have more power… …can buy more products… …can get a lof information… (!!!) …can easily contact organizations… …can get in contact with other consumers very easily… (!!!)
  48. 48. To personalize marketing Experience marketing One to one marketing Permission marketing
  49. 49. experience economy: brand activation
  50. 50. “... when a consumer buys an experience, he pays to spend time enjoying series of memorable events that a company stages – as a theatrical play – to engage him in a personal way...” The Experience Economy (Pine & Gilmore, 1999)
  51. 51. goods, services and experiences goods services experiences organisation 1 services goods experiences organisation 2 experiences goods service organisation 3
  52. 52. Which examples do you have from your every day life?
  53. 53. an example Commodity: grower Goods: manufacturer Service: coffee corner Experience: premium coffee shop Ultimate: Café Florian, Venice 2 cts per cup 5-25 cts per cup 50 cts - € 1 per cup € 1 - € 4 per cup € 5 - € 10 per cup
  54. 54. progression of economic value commoditization commodities services goods experiences commoditization commoditization customization customization customization
  55. 55. translation progression of economic value = toename van economische waarde customization = maatwerk commoditization = vereenvoudiging commodity = grondstof / bulkgoed
  56. 56. experience economy • to arouse consumers (emotionally) • customization vs. commoditization • customers are willing to pay more for experiences  non-price-competition
  57. 57. an example Commodity: Goods: Service: Experience: Ultimate: per movie per movie per movie per movie per movie Film,camera,acteurs,actie DVD, Blu-ray,TV, popcorn Bioscoop, videotheek, on demand, drive in, Popcorngeur, 3D, stoelen, Pandadroom, ladies night, infotainment complex,
  58. 58. brand activation 1. Traditional media 2. New media
  59. 59. Or? brand activation 1. (Brand) paid media 2. (Brand) owned media 3. (Brand) earned Media
  60. 60. brand earned media??
  61. 61. Media type Definition Examples The role Benefits Challenges (Brand) paid media Brand pays to use channels •Display ads •Paid search •Sponsorships Active role in enlarging brand knowledge •In demand •Immediacy •Control •Overload •Declining response rates •Poor credibility (Brand) owned media Channels a brand controls •Website •Mobile site •Blog •Twitter Build for longer- term relationship with existing potential customers •Control •Cost efficiency •Versatility •Niche audiences •Long term •No guarantees •Not trusted •Takes time to find segments (Brand) earned media When customers become the channel •Buzz •Viral •Experience Listen and respond. Interact. Create. Come alive •Most credible •Transparent and lives on •Strong ties with customer •Less control •Can be negative •Hard to measure
  62. 62. so what has changed? • Permission vs. Interruption • Creativity vs. Overwhelming • Extensive segmentation • Choosing instruments on the fly
  63. 63. examples • commercially – Magnum Gold – Pasos de los Toros – Madame Tresesti – Adidas – Legoclick – Heineken • non-commercially – $73,000 bar tab
  64. 64. ...a focus on quality of communication, not on quantity or reach more focus on impact...
  65. 65. “...a brand is a perfect tool for transferring information, meanings and feelings through media...”
  66. 66. values brand community
  67. 67. “...Kiss has licensed its name to more than 2,000 product categories, from lunch boxes and comic books to credit cards and condoms to become nearly a one-billion-dollar brand..."
  68. 68. “...a b(r)and is a perfect tool for transferring information, meanings and feelings through media...”
  69. 69. brand media community music
  70. 70. try to work together give me your brand and you get mine
  71. 71. target group sub-target group brand X band X
  72. 72. values tokio hotel community • young • creative • urban • metro-sexual
  73. 73. values tokio hotel community • young • creative • urban • metro-sexual
  74. 74. a community gives input to the meaning and value of the brand: “…if you’re like us, you use brand X…”
  75. 75. a band gives input to the meaning and value of the brand: “…if the band srews up, so does the brand…”
  77. 77. THE DIXIE CHICKS The Dixie Chicks are a country music group, comprising three women; Martie Maguire, Natalie Maines, and Emily Robison. Together, they have sold over 36 million albums as of May, 2008. The group formed in 1989 in Dallas, Texas, and was originally composed of four women performing bluegrass and country music, busking and touring the bluegrass festival circuits and small venues for six years, without attracting a major label. After the departure of one bandmate, the replacement of their lead singer, and a slight change in their repertoire, the Dixie Chicks achieved massive country music and pop success, beginning in 1998 with hit songs like "Wide Open Spaces", "Cowboy Take Me Away", and "Long Time Gone". The women became well-known for their independent spirit and outspoken comments on controversial subjects, including politics.
  78. 78. THE DIXIE CHICKS • “Wide open spaces” • “Long time gone” • Lipton
  79. 79. Lipton is one of the world's best known and best-selling brands of both hot leaf and ready-to-drink tea. It is currently owned by Unilever. Over the course of a century, Lipton has become a dominant tea brand in many markets. The brand is well-represented in many countries across the globe, including the US, Russia, Saudi Arabia, France, Japan, Australia, and Sweden. Compared to other tea brands, Lipton has always had a strong focus on innovation, given its continuous launch of both leaf tea and ready to drink tea products. Products target the mass market and are generally positioned in the middle of the price spectrum for tea. Due to its size, Lipton is also a dominant player in tea expertise in the world.
  80. 80. In 1991, Unilever created a first joint venture with PepsiCo, the Pepsi Lipton Partnership, for the marketing of ready to drink (bottled and canned) teas in North America. this was followed by a second joint venture, Pepsi-Lipton International (PLI) in 2003, covering many non-US markets. PLI was expanded in September 2007 to include a number of large European markets. Both PepsiCo and Unilever control 50% of the shares of these joint ventures.
  81. 81. Shut up & sing • Deel 1
  82. 82. An ad for Lipton Iced Tea that features the Dixie Chicks is temporarily on hold, according to people familiar with the situation. The country music group’s lead singer in March during a concert was made comments critical of President Bush in the days leading up to the country’s war with Iraq. A spokeswoman for Unilever, which jointly markets Lipton with PepsiCo in the Pepsi-Lipton Tea Partnership, would not comment on why the Dixie Chicks ad is not running but said, “Lipton has a number of different advertising and promotional plans in the works and has opted for now to run the commercials that currently are on air.” It’s uncertain when or if the ad will run. The ads were to have debuted in May to coincide with the group’s first world tour in three years. Three current 30-second spots, which focus on getting back to a healthy way of living, started running in May in the slots designated for the Dixie Chicks ad, according to one person familiar with the situation. The person said the ads were rushed into production after comments made by Natalie Maines, the group’s lead singer, caused a furor among some country music fans.
  83. 83. uitleg werkvorm • kies uit de volgende categorie telkens 1 onderdeel: – 1. music brands – 2. community – 3. values – 4. corporate brands • maak koppelingen tussen de 4 entiteiten door middel van het volgende model • onderbouw de keuzes die je maakt
  84. 84. questions? /comments
  85. 85. thank you!